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Prepared by StratagemTRADE.com and Scott
Writing under the nom de plume of J.L. LORD

Friday | May 8, 2020

Hello Eizell.

YESTERDAY'S CLOSING PRICES

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YESTERDAY: May 7

In the MORNING COFFEE REPORT yesterday, all I wrote in the TODAY section was “Another attempt to hit 2900”.

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This is exactly what we got – we hit 2901 and fell. The day started out with the market propelled higher because of rising oil prices. Despite oil falling from being higher by $2 to eventually trade down on the day, the market didn't stop trying to stick its nose above 2900.

When the SPX got to 2900, it sat there for a long time looking around, but didn't like what it saw, so it sold back off a little to close at SPX 2881.19. As usual, the high tech FAANG stocks did much of the heavy lifting for the market, taking the NASDAQ into positive territory for the year.

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In the theme song for the movie GHOSTBUSTERS, there is a line that says:

“Who you gonna call? Ghostbusters!
I ain't afraid of no ghost.
I ain't afraid of no ghost.”

This market ain't afraid of no virus, or its subsequent unemployment. It views it as temporary – at least for now. Hell, even Elon Musk can snap and lose his mind publicly and his stock doesn't move.

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TODAY: May 8

THROUGH 2900 THIS TIME

In the POT class (and a subsequent update) on Wednesday morning, I told students “many times we park just under a major number until news comes out to propel the market through it”. Today we go through 2900.

Yesterday and Wednesday, we played with 2900, but could not close above, selling off on the close to scare people out. Today, those same people will buy again. We may see SPX 3,000 in weeks despite all the bad news.

When the market was down 36%, people were calling me nuts, and that we will never be up on the year. One thing has nothing to do with the other. BTW...I do not suffer from insanity ...I enjoy it most of the time.

For the record... the NASDAQ is now higher for the year.

I am still standing by my prediction (made December 31, 2019) that we will be positive for the year and making new all-time highs by the end of the year. I maintained this stance even when the SPX was down -35% for the year.

S&P 500 Price Limits

From 8:30 a.m. to 2:25 p.m. CST, there are successive price limits corresponding to 7%, 13%, and 20% declines below the previous trading day’s reference price.

From 2:25 p.m. until the 3:00 p.m. CST close of the cash equity market, only the 20% price limit will be applicable.

2020 ONE-YEAR PREDICTION:

Average year with lots of inter42mittent volatility
(-10.82% so far)

POT Logo



A separate update is coming.

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DISCUSSION BOARD

Up and Running for POT students (so far).

Really quickly...

To help in your quest for the best possible options trading outcomes, we would like to know what level of options trading knowledge and skills you currently have. Please click the button below to indicate what level of trader you are? Please skip if you already responded. Thank you for participating.

P.O.T. Schedule to come.

LAUGH OF THE DAY

Trading is a tough job on a stomach void of coffee and humor.
You provide the coffee and we will take care of the rest.

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Disclaimer

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